Bitcoin remains on an upward trajectory despite its recent price fluctuations, although some analysts believe that the cryptocurrency may have reached a temporary high, especially with the upcoming U.S. elections in focus.
Copper Research analysts
pointed out
in their recent report that on-chain data and price movements indicate that
Bitcoin
might have hit a short-term peak.
Their analysis shows that 98% of wallet addresses are currently profitable, a significant increase from 75% in the past. Historically, such high profitability levels have often led to selling activity as investors look to capitalize on their gains.
They explained,
“When we see large shifts in the market, the trend tends to reverse when many addresses show profits, leading to increased selling pressure. This suggests that Bitcoin might be at a temporary high, with potential continued selling.”
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Moreover, the analysts noted that while there have been strong inflows into spot Bitcoin ETFs, overall interest among investors has been lukewarm.
Despite Bitcoin briefly surpassing the $69,000 mark for the first time since July, they observed that growth indicators have been lacking. Earlier this year, the market experienced significant daily growth in ETF investments, which seems to be missing now.
